It's kind of obvious, but the fierce selling across all banks -- especially since THE DOWNGRADE -- is really quite worrisome.

We keep hearing about how well capitalized and how liquid the US banking sector is. And there isn't a housing bubble bursting right now (although bank assets have no doubt been taking hits). But the intensity of the selling, and the fear (perhaps) that the crisis in Europe could jump the wire and come here via banks is not something that can be taken lightly.

The politics, too, is horrible for banks. There's no support in the US for doing anything to bolster the banks, at least not in Congress.